NTC — Interim / Quarterly Report 2020

Jul 30, 2020

Nuvoton Technology Corporation

1H’20 Investor Conference July 30, 2020

Safe Harbor Notice

• We have made forward-looking statements in this presentation. Our forward-looking statements contain information regarding, among other things, our financial condition, future expansion plans and business strategies. We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that these expectations and projects are reasonable, such forward-looking statements are inherently subject to risks, uncertainties and assumptions about us.

• We undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future event or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this conference might not occur and our actual results could differ materially from those anticipated in these forward-looking statements.

• The information contained herein shall also not constitute an offer to sell or a solicitation of an offer to buy the company’s securities nor shall there be any sale of such securities in any state or country in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or country.

Agenda

• Nuvoton Financial Results

• Nuvoton 1H’20 Business Results & 2H’20 Business Outlook

• Panasonic Semiconductor Acquisition Update

• Q&A

Nuvoton Financial Results

• Nuvoton Consolidated Statement of Comprehensive Income

• Nuvoton Consolidated Balance Sheet

• Nuvoton Consolidated Statement of Cash Flows

• Nuvoton Revenue and GM Trend - Consolidated

Nuvoton Consolidated Statement of Comprehensive Income

Selected Items from Statement of Comprehensive Income.

	2Q’20		1Q’20		1H’20		1H’19			YoY
Unit: NT$ M	Amount	%	Amount	%	Amount	%	Amount	%		Amount	%
Net Revenue	3,061	100	2,133	100	5,194	100	4,634	100		560	12
Gross Profit	1,262	41	844	40	2,106	41	1,834	40		272	15
Operating Income	337	11	10	1	347	7	184	4		163	89
Net Non-Operating Income	62	2	9	0	72	1	74	1		(2)	(3)
Income before Income Tax	400	13	19	1	419	8	258	5		161	62
Net Income	333	11	11	1	344	6	214	4		130	61
EPS (NTD)	1.16		0.04		1.2		1.03			0.17

Note: Weighted average outstanding shares were 287.5M units in 1H’20.

Nuvoton Consolidated Balance Sheet

Selected Items from Balance Sheet.

Cash & Cash Equivalents 6,674 49 1,653 24	5,021 304
Accounts Receivable 1,195 9 1,052 15	143 14
Other Receivable 516 4 194 3	322 166
Inventories 1,906 14 1,537 23	369 24
Long-Term Investments 1,072 8 521 7	551 106
Property, Plant and Equipment(including R.O.U) 1,317 9 1,345 20	(28) (2)
Others 963 7 533 8 Total Assets 13,643 100 6,835 100	430 81 6,808 100
Current Liabilities 2,913 21 2,506 36	407 16
Non-Current Liabilities 3,403 25 866 13	2,537 293
Total Liabilities 6,316 46 3,372 49	2,944 87
Total Equity 7,327 54 3,463 51	3,864 112
Current Ratio 3.58 1.83
Dbt/Eit Rti 086 097
equy ao . .

Nuvoton Consolidated Statement of Cash Flows

	1H’20	1H’19		YoY
Unit: NT$ M	Amount	Amount		Amount
Cash Flows from Operating Activities	229	277		(48)
Cash Flows from Investing Activities	(339)	(140)		(199)
Cash Flows from Financing Activities	1,939	(47)		1,986
Cash & Cash Equivalents	6,674	1,653		5,021

Nuvoton Revenue and GM Trend - Consolidated

Revenue/Gross Profit (NT$ M)

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Gross Margin Rate
歷史新高
3,000 2,944 3,061 50.0%
2,789
44.1% 2,684 2,642
2,584
41.3%41.1%40.6% [41.5%][42.4%] 41.2% [42.2%] 2,471 41.2%
2,500 39.6% [40.2%] 2,406 2,410 39.9% 40.3%40.0% [40.0%] 39.6%
38.0% 38.3% [38.7%39.4%39.5%38.6%]
2,296 2,243 40.0%
2,223 2,150 2,105 2,123 2,133
2,050
2,000 1,924 [1,987 ]
1,852
1,770
30.0%
1,632
歷史新高
1,500
1,262
1,178 1,116 20.0%
1,042
992 [1,017 ] 1,038 1,041 975
943
1,000 851 846 917 859 844
806 792
720 [794 816 ] 719 [769 ]
10.0%
500
0 0.0%
1Q'152Q'153Q'154Q'151Q'162Q'163Q'164Q'161Q'17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Revenue Gross Profit GM%
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Nuvoton 1H’20 Business Results & 2H’20 Business Outlook

• 1H’20 Revenue by Product

• 1H’20 Revenue by Application

• Nuvoton 1H’20 Business Results

• Nuvoton 2H’20 Business Outlook

1H’20 Revenue by Product

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Non-MCU
23%
23%
77%
77%
MCU
Non-MCU
23%
23%
77%
77%
MCU
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HoH %
MCU 0.1%
Non-MCU -0.1%
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YoY %
MCU 0.3%
Non-MCU -0.3%
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Note: Foundry revenue was not included in the numbers .

1H’20 Revenue by Application

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Computer
Automotive & Industrial
24%
32% HoH %
44% Computer 9%
2% Consumer 0%
53%
Communication & Communication & Others -1%
Others 3% Automotive & Industrial -8%
21% 21%
Consumer
Automotive &
Computer
Industrial
24%
26%
YoY %
Communication & Computer 7%
46%
Others 2% Consumer -5%
2% 53%
Communication & Others 0%
Automotive & Industrial -2%
26%
21%
Note: Foundry revenue was not included in the numbers .
Consumer
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Nuvoton 1H’20 Business Results (1)

1H’20 YoY : Revenue +12%, Gross Margin +15%, EPS +0.17

• Key reasons for Revenue YoY Increase

• Growth of NuMicro MCU applying on General-Purpose and Healthcare-Related Applications

• Strong EC demand for Commercial NB (Work from Home) and Chromebook (Study from Home)

• Growth of BMC shipment to both Enterprise and Data Center customers

• Key reason for Gross Margin YoY Increase

• Product Mix

Note: All trademarks and copyrights mentioned herein are the property of their respective owners.

Nuvoton 1H’20 Business Results (2)

• 1H’20 Main Achievements

• Launched brand new M031 Series 3V Microcontroller with rich portfolio from 16KB ~ 512KB Flash

• Cooperated with Amazon to provide an Alexa Connect Kit (ACK) by NuMakerM032 development board easily migrate a traditional device to a smart device

• Mass production of NAU8315 (Mono Class D amplifier) in WLCP package

Note: All trademarks and copyrights mentioned herein are the property of their respective owners.

Nuvoton 1H’20 Business Results (3)

• 1H’20 Main Achievements

• Shipments of BMC product to both Enterprise and Hyperscale Data Center customers

• New product USB Type-C port controller (TCPC) combined with NB EC (Embedded Controller) has been designed in Chromebook platforms

• The contributions from Power management IC (Foundry Service)

14

Nuvoton 2H’20 Business Outlook

• New Products and Developments

• NuMicro Arm® Cortex®-M23 based M254 new ultra low-power MCU series with Touch and LCD for smart home appliances

• Development of high processing power MCU and MPU for the industrial control and IoT gateway and edge devices

• Released Smart Amp products, NAU83G10 and NAU83G20

• OpenBMC firmware supports for BMC products

• New Foundry Service Processes

• Development of new generation BCD process

• Development of new customers of Half bridge HVIC process

Note: All trademarks and copyrights mentioned herein are the property of their respective owners.

Panasonic Semiconductor Acquisition Update

• Acquisition Summary

Acquisition Summary

• Announced acquisition on November 28, 2019

• Approved the transaction price of land acquisition not over US$ 50M on May 19, 2020

• Collected NT$2,000M from issuing Nuvoton’s 1st Unsecured Convertible Corporate Bond on May 19, 2020 for financing this acquisition

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• Expected close date in Q3

Questions & Answers

Company website Nuvoton: www.nuvoton.com